Dollar Value LIFO and Inventory Pools The Webster Company adopted dollar value LIFO on January 1, 2007. The company produces three products: X, Y, and Z. The company’s beginning inventory consisted of the following:
|
Type |
Quantity |
Cost per Unit |
Total Cost |
|
X |
30,000 |
$4.25 |
$127,500 |
|
Y |
10,000 |
3.5 |
35,000 |
|
Z |
25,000 |
2 |
50,000 |
|
65,000 |
$212,500 |
During 2007, the company had the following purchases and sales:
|
Type |
Quantity Purchased |
Cost per Unit |
Quantity Sold |
Selling Price per Unit |
|
X |
110,000 |
$4.75 |
90,000 |
$10.00 |
|
Y |
100,000 |
3.75 |
85,000 |
7.5 |
|
Z |
75,000 |
2.1 |
70,000 |
5 |
|
285,000 |
245,000 |
Required
1. Compute the LIFO cost of the ending inventory assuming Webster Company uses a single inventory pool. (Round cost index to 4 decimal places.)
2. Compute the LIFO cost of the ending inventory assuming Webster Company uses three inventory pools. (Round cost indexes to 4 decimal places.)